Five Building Materials Stocks Hedge Funds Like

#2 USG Corporation (NYSE:USG)

– Investors with long positions (as of March 31): 31

– Aggregate value of investors’ holdings (as of March 31): $1.4 billion

Moving on, the ownership of USG Corporation (NYSE:USG) among funds covered by us went up by seven and the aggregate value of their holdings in it jumped by $115 million during the first quarter. Shares of USG Corporation (NYSE:USG) started trading down  in the second-half of 2015 after being range-bound for more than two years, which continued till the beginning of 2016. However, owing to the phenomenal 55% gains they have registered since February, they are currently trading up by some 13% year-to-date. Citing the company’s dominant position in the domestic wallboard market and improving macros, most analysts believe that the stock will continue to perform well going forward. On May 4, analysts at Goldman Sachs reiterated their ‘Neutral’ rating on the stock, but boosted their price target to $27 from $24. With ownership of 39 million or 26.74% of all outstanding shares of USG Corporation, Warren Buffett‘s Berkshire Hathaway continued to remain its largest shareholder among funds tracked by us at the end of March.

#1 Continental Building Products Inc (NYSE:CBPX)

– Investors with long positions (as of March 31) : 31

– Aggregate value of investors’ holdings (as of March 31): $187.76 million

Continental Building Products Inc (NYSE:CBPX) was the building materials stock that saw the highest rise in popularity among hedge funds covered by us during the first quarter. The number of hedge funds tracked by Insider Monkey long Continental Building Products Inc (NYSE:CBPX) rose by 41% and the aggregate value of their holdings in it increased by almost 70% during that time. Funds that increased their stake in Continental Building Products significantly during the first quarter included Phill Gross And Robert Atchinson‘s Adage Capital Management, which boosted its holding by 74% to 1.96 million shares and was the largest shareholder of the company among funds we cover at the end of March. It’s not hard to understand why hedge funds are falling in love with the stock. It has been on a consistent uptrend since February and has so far registered gain of 32.32% in 2016. However, it’s not only hedge funds that are bullish on the stock, most analysts also share the same view. On June 2, analysts at Barclays reiterated their ‘Overweight’ rating on the stock and increased their price target to $24 from $22.

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